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Wave Crest Cosmetics produces cosmetic products for 11 major buyers. One customer accounts for of the sales, the other 10 customers account for the remaining
Wave Crest Cosmetics produces cosmetic products for 11 major buyers. One customer accounts for of the sales, the other 10 customers account for the remaining sales. The 10 smaller customers place orders of about equalse, The large customer purchases 1,000,000 units per year by placing orders per year, and the 10 smaller customers order 1,000,000 units in total by placing 300 orders per year. Ordering costs total $518,500 per year. How much would be assigned to the large customer as ordering costs using activity-based customer costs? 259.250 b. $7,900 C. $8,500 d. 8510,000 Which of the following stages are a part of activity-based costing? I. Trace costs to activities II. Overhead costs are assigned to cost objects III. Trace costs to cost objects IV. Overhead costs are assigned to a plant or department a. I, II, and IV Ob. II and IV O c. I and III Od. I, II, III, and IV Activity drivers are: a. not realistic in today's manufacturing environment. Ob. not required under activity-based costing. c. factors that measure the consumption of activities by products. d. factors that are related to each unit of the product
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